Feasibility Analysis of Investment Projects on Housing Development in Thailand with Valuation Technique Based on Economy Factor

Abstract

This research concerns feasibility analysis of investment project in housing development in Thailand with valuation technique based on economy factor. The researchers brought conversion factor, which World Bank developed in 1997 to apply with financial return calculation of the project. The results showed that the project was highly possible to invest. By considering financial ratio, which was valuated based on economy factor, IRR value reached 17.43%. This value was higher than other return on investment such as deposit with bank, debt instruments investment, gold, common stock, and NPV was higher than zero, equal to 50,706,519.93 Baht. Whereas other financial ratio had appropriate value, including profitability index which reached 1.10 and return on investment which was ROA, ROE, GPM, and OPM equal to 29%, 22%, 97%, and 91% respectively. For a conclusion of administrative affairs according to business plan strategy, it was found that real estate entrepreneurs should establish salesperson skill training to know business process and condition, especially knowledge about Building Control Act, customer service process, and should emphasize on a location of project which was near to public utility, official place, and department store. Moreover, they had to provide sales promotion by giving a discount and gift, for example, air conditioning, motorcycle, etc. The important thing was to refund money back to customers in case that a credit was not valid, and the entrepreneurs should put an importance on advertising and making public relation about housing development project via media such as banner, local radio, television, and local newspaper. Keywords: Investment feasibility, housing development, valuation based on economy factor



Author Information
Thirawat Chantuk, Silpakorn University, Thailand
Teera Kulsawat, Burapha University, Thailand
Nawalak Klangburam, Burapha University, Thailand

Paper Information
Conference: ACSET2013
Stream: Education

This paper is part of the ACSET2013 Conference Proceedings (View)
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